Rethinking Trade
Darius Mans, CEO of the Millennium Challenge Corporation
Huffington Post, August 21, 2009
The economic recovery of the United States depends in large part on the rest of the world. Ninety-five percent of all consumers live outside America’s borders, constituting huge potential markets for American goods and services. Ninety-seven percent of American exporters employ fewer than 500 employees, so the future of many small and medium-sized businesses relies on trade. One in six American manufacturing jobs is supported by trade, and agricultural exports support nearly a million more jobs. And, in a time of cutbacks and layoffs, American jobs supported by exports pay 13 to 18 percent more than the national average.
“We need trade to grow America’s economy,” confirms U.S. Trade Representative Ambassador Ron Kirk. “When income levels rise in other countries because of trade, American goods find new markets,” he summarizes. One way to foster productive international trade is through effective U.S. foreign assistance that works to create stronger trade partners throughout the developing world. Such partners, in turn, are better equipped to attract the investments that can connect them to markets, lift them out of poverty, and place them on a path to sustainable economic growth.
While many think of American aid as short-term responses for humanitarian concerns, it is much more than that; U.S. development assistance funds are also invested to bolster the trade capacity of developing countries to better integrate them with the global economy, benefitting them and us. That is why the United States is meeting with sub-Saharan African countries this week in Kenya at the 8th AGOA (African Growth and Opportunity Act) Forum to discuss ways to facilitate greater trade and investment. U.S. assistance supports technical training to help the poor develop trade strategies to access American markets, streamline their customs and national standards, and boost trade-related skills. American aid builds roads, ports, and bridges to literally connect the poor to global markets so they can compete and trade.
